Browsing by Author "Muchiri, Bancy"

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    Financial Determinants and Financial Sustainability of Small and Medium-Sized Enterprises in Nairobi City County, Kenya
    (International Academic Journal of Economics and Finance (IAJEF), 2025-02) Owino, Odhiambo Dancun; Irungu, Anthony; Muchiri, Bancy
    Small and medium-sized enterprises encompass businesses with a workforce size ranging from ten to ninety-nine individuals. These enterprises are pivotal in fostering economic growth and job creation, constituting approximately ninety-eight percent of all businesses in Kenya. However, there is a worrisome trend of limited growth in new SME formations, and many of them face closure within the initial five years due to financial constraints and other factors. The study explored financial factors that affect the sustainability of SMEs in Nairobi City County. The primary goal was to identify the financial determinants and assess the sustainability of SMEs in this specific region. To achieve this, the study focused on examining the effect of access to finance, financial innovation, financial management and financial risk management on SME sustainability. The agency, pecking order, modern portfolio and diffusion of innovation theories guided the study. A descriptive research design was employed, utilizing a sample of 347 SMEs. Secondary data was obtained through templates and primary data was gathered via questionnaires. The collected data was analyzed using inferential and descriptive statistics, including regression econometric modeling. Findings were presented through frequency tables, graphs and percentages. Findings revealed that access to finance is statistically significant in explaining financial sustainability of SMEs (β =0.245, p < 0.05). It was noted that financial innovation is statistically significant in explaining financial sustainability of SMEs (β= 0.317, p